Earlier this week, Microsoft filed suit against three members of the same family alleging online fraud. The suit, which targets Melanie Suen and sons, Eric Lam and Gordon Lam, of Vancouver, British Columbia, claims that the three engaged in what is described as “massive” click fraud.
Microsoft has asked for damages of at least $750,000 to recover from a scheme that the company alleges affected their advertising business; the company alleges that they have to return $1.5 million to its advertisers as a result of the activity. Suen and the Lams reportedly generated false clicks on their auto insurance and World of Warcraft sites.
In the online world, advertising revenue is driven by clicks on links and ads - this is sometimes referred to as “pay per click.” Many online companies offer affiliate programs and other ad-centric sites which pay based on clicks; advertisers pay for ad placement on these sites based on a number of factors ranging from site popularity to content.
Microsoft alleges that by gaming the system, Suen and the Lams lead Microsoft and its advertisers to believe that there was interest in a number of ads, when in fact, there was none.
The lawsuit, thought to be the first of its kind, is clearly meant to be a deterrent for click fraud behavior. The defendants have not yet offered any comment.
{ 0 comments… add one now }